European shares recover, airline stocks zoom on Brexit delay

(Reuters) - European shares ground higher on Thursday, buoyed by gains among bank and travel stocks, with risk appetite aided by a European Central Bank official expressing willingness to support the euro zone.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 10, 2019. REUTERS/Staff

French central bank head Francois Villeroy de Galhau said that the euro zone was not in the situation of Japan and that the ECB was “not short of ammunition” to accelerate price growth and buoy the economy.

LVMH’s shares rose 4.6 percent to a record closing high after the Louis Vuitton owner posted strong first-quarter sales.

Villeroy’s comments reassured the market and helped investor sentiment as they showed “the institution is willing to give the region assistance, if needed,” David Madden, market analyst at CMC Markets UK, wrote in a note.

Banks, down 0.3 percent on Wednesday following ECB comments which failed to impress investors, more than recovered with a 1.3 percent gain.

Commerzbank rose 3.1 percent with its supervisory board chairman dismissed reports of board dissatisfaction with its chief executive as irresponsible and unfounded. He also said the bank “must explore” the option to merge with Deutsche Bank, which gained 2.9 percent.